Kauri bonds...

...issuing bonds in a currency backed by an economy with GDP of 130 Billion.(by way of comparison, California alone is 1.3 Trillion and Kentucky is 146 Billion). Interesting.

17 (Bloomberg) -- New Zealand dollar-denominated note sales by foreign issuers in the country are surging due to European sovereign debt concerns and favorable currency swap discounts, Australia & New Zealand Banking Group Ltd. said.

The Asian Development Bank’s first ever sale of so-called kauri bonds and deals from borrowers including the World Bank and the European Investment Bank boosted total sales since Dec. 31 of the securities to NZ$875 million ($615 million), from none at this time last year, according to data compiled by Bloomberg.

“Both investors and issuers are willing to cast their nets wider as confidence in core markets like Europe suffers,” said Dean Spicer, head of domestic capital markets for ANZ in Wellington, who has helped manage all this year’s kauri bond sales. “There’s been an increased interest in Kiwi dollar assets from offshore investors in particular.”